Tesla hikes the value of shares up for grabs

Signage is displayed outside of Tesla Motors before the
Tesla Energy Powerwall Home Battery event in Hawthorne,
CaliforniaThomson
Reuters

(Reuters) - Electric car maker Tesla Motors Inc said it was
looking to raise about $642.5 million through a share sale, above
the $500 million it announced on Thursday.

The company said on Friday it would offer about 2.7 million
shares at $242 per share, a slight discount to Thursday's close
of $242.51.

The company's shares were up 0.7 percent at $244.10 in premarket
trading.

Chief Executive Elon Musk will maintain his investment of $20
million in the offering, Tesla said.

The automaker said on Thursday it would sell 2.1 million shares.

"Tesla's (offering), combined with existing credit lines, will
provide the company with more than enough cash for operational
purposes into 2016," S&P Capital IQ analyst Efraim Levy said
late on Thursday.

The company has been burning through cash as it expands its auto
and energy storage businesses.

Tesla said on Thursday it would use proceeds from the sale to
help fund its upcoming Model 3 project and Nevada-based battery
gigafactory.

Tesla's Model 3 vehicle, which will compete with BMW's 3 Series
sedans, is expected to go on sale in 2017.

Up to Thursday's close, Tesla's stock had fallen about 10 percent
since Aug. 5, when the company reported second-quarter
results.